May 16, 2018

You're a non-tech average businessman, you have GBP £20,000 to spend, where do you invest?

I will soon have around £20,000 to invest which I know is not much, I would like to invest it into a web property and continue to grow it, whilst recouping the investment back over X years.

I ask myself is that the best approach however. Perhaps I should look into other ideas, what would you do if you had the money but could not code.


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    Take a look at crowdfunding platforms like seedrs. That way you can invest in businesses you're interested in without the normal faff that comes with being an investor. With 20K you could have a wide range of investment companies.

    Just be mindful, that investing in startups is high risk. Never invest money you're not willing to lose.

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      Nice idea I had not thought about that actually, I highly appreciate the suggestion.

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      Are there any success stories on Seedrs? It is an interesting model and there are interesting businesses there (for example I found Oppo Ice Cream very interesting) but there are also lot of very small businesses that seem to use crowdfunding as their last resort (even though I really believe in the power of the crowd I think it also leads to a lot of noise). Your thoughts on that?

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    One option would be to save your 20k (edit: or give them to me) and invest time learning tech instead and build a business like most of us around here.

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      Hey,

      Could you elaborate a little further on the learning tech concept, I'm not quite sure how learning about a piece of tech would enable me to start a business around it.

      Perhaps I'm totally missing a point here, do you have an example. I suffer from dyscalculia (dyscalculia with numbers) - I'm most likely in the 1% of low IQ's on here ;)

      Thanks

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        Sorry I wasn't clear, I meant learning software development so that you can build something yourself rather than putting money into something someone else builds.

        I'm not familiar with dyscalculia, but I've heard of cases where people with "disabilities" could excel in specific domains.

        Anyway, we're getting a bit off topic here.

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          That's cool thank you. Yeah I have tried coding and my issue get in the way. :)

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        Well, i suppose what Hery means is that if he had money he'd be able to afford some time off.

        For example if i had 20k in the bank, and i wanted to build my own app i could live without work for a few months while i learn how to build & then build the app to try to sell it later :)

        I personally would probably take a month off before i start a big project like that :)

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          Gotcha :)

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    First off, expect to lose everything and make sure that's not something you'd regret or could put yourself/your family in a difficult position :)

    I think the important thing is not to rush. Don't let the money burn a hole in your pocket. Check out flippa.com and maybe get in touch with @ThomasSmale and the guys at FE International - you're a bit on the low-end for them, but they are great to work with and know their stuff.

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      I've done over 50 transactions in the last 12 months on Flippa.

      https://flippa.com/users/27724

      I started with a budget of 3k.

      There can be some great deals if you strategic as well as experienced however you could lose a ton as well. I wrote off about 11k but it still worked out for me.

      Im a open book... feel free to reach out to me.

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        Hi Thomas,

        Thanks, I do have some questions. I too have worked within the web property acquisitions market before.

        How do you go about finding their:

        1. Financials - Revenue/EBITDA

        2. Marketing data (if they have some)

        3. Number of active subscribers (end of period) - 2016 | 2017 | 2018 based on growth rate of 12% from the last three years.

        Do you work through a broker?

        I personally would seek valuations in the range of 2x-3x as I would usually pay in the vicinity of 2x-3x (max x4) EBITDA for the last 12 months (LTM).

        Thanks

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          @Lee Flippa is not that kind of marketplace and very few sites would fit that criteria and price point of 20k. Theres not enough dealflow to wait for that perfect site.

          I went a different route and used my experience to leverage an upside down business model strategy.

          I went with wholesale method and threw standard 2x-3x evaluations out the window.

          Most sites i bought that had the highest returns had no stats as well as made zero revenue but i acquired equity the day i bought them knowing that i had a really good idea of what the "marketplace" would pay.

          However if your looking for something safe then the best thing to do is overpay for a high quality site on Flippa somewhere in the 4x-5x and than spend money the leftover money to grow that site.

          Aged sites in a good niche hold value much like real estate.

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            Thanks Thomas I appreciate the advice buddy. Sounds like we are not that far apart in regards to work sectors. Do you have Skype we could potentially have a chat, who knows we could even partner up with something.

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              You can get all my contact info at the bottom of this article.

              https://resources.flippa.com/success-stories/thomas-tran-super-seller-interview/

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                Roger that.

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      Thanks I have heard good things about FE I shall contact them directly, in regards to losing money I'll try to prevent that. I would always have my finance guys check the due diligence before sending funds.

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    Learn software development:1)You can build apps,you can train people and many more.Look at Blockchain developers in high demand and endless opportunities.

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    What is your circle of competence?

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    Sane ICOs and Cryptos

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    What is your experience growing web properties?

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      Check my comment above. I have worked in the acquisitions sector before.

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    Well, putting a small percentage into this web property called bitcoin might not be a terrible idea.

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      I'm in the % that 1. read negative feedback on it and run 2. suffer with my numbers I don't think punting my money like that would be ideal. I have a family after to take care of after all.

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        Yeah, I think what you specified in OP is actually opposite to going Crypto. Better to invest in a project or few.

  9. 1

    If you're looking to minimise risk, the smart play is to forget the web or startups and instead invest in stocks and shares. Investing in an idea or startup is very high risk, and you'll more than likely lose every penny, but the return, if you have patience, can ultimately be much greater.

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      I don't think s/s would be ideal for me because I suffer from dyscalculia. If I were to invest into web properties I would always get the DD/FC checked out first. I would never go in blind before parting with my money :)

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        Buy an index tracker - FTSE100, or MSCI World Index, and you don't have to think about anything after that. That sounds much better for your risk profile than buying web companies

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          Couldn't agree more. Get a safe long-term investment strategy before jumping into something as difficult and risky as buying a business.

          This book is recommended https://www.amazon.co.uk/Little-Book-Common-Sense-Investing/dp/0470102101.

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          We're worlds apart [literally] those are alien words to me :)

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            I think you need a financial advisor more than advice on indie hackers - post on reddit if that's easier and they'll probably tell you to buy an index fund (that is the same as buying a bit of every major company in the world, e.g. https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-ucits-etf?intcmpgn=equityglobal_ftseallworlducitsetf_fund_link)

            https://www.reddit.com/r/UKPersonalFinance/

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              Cheers